News In Brief

December 19, 1984

Bonn

West German Cabinet OKs heavy cuts in income taxes

The West German Cabinet approved a $6.5 billion package of income tax cuts Tuesday which it says are the biggest in the nation's history. The first stage, in 1986, will reduce taxes by $3.5 billion, mainly benefiting those with middle and low incomes, as well as families, by raising tax thresholds and sharply increasing tax-free child benefits. The second phase, worth $3 billion and due to go into effect in 1988, will reform tax thresholds across the board.